share in refrigerators and ACs with launch of its first digital inverter-frost free refrigerators in India, a company official said today.KOLKATA/NEW DELHI: Samsung Electronics is likely to lay off almost 5% of its staff in India across managerial-level executives and factory and blue-collar workers as the Korean chaebol takes steps to become leaner and reduce costs amid slowing sales, five senior industry officials said.

The country's largest mobile phone and consumer electronics maker told some 90 employees to put in their papers with immediate effect last week and another 125-150 employees will be asked to leave after Diwali, the officials said.

The remainder will likely be shunted out in phases by December and March, with a total of 750 to 1,000 employees set to lose their jobs unless their performance improves. At present, there are about 22,000 employees in Samsung India, including workers at the company's two factories.

About 35 of those being asked to leave are in the grade of general manager and higher. Four senior executives at vice president level have already quit -- SK Sharma, who handled taxation, Rajinder Sharma, who was the legal head and has joined Flipkart, Sanjay Bali, who headed HR, and Vipin Tuteja, who looked after the printer business.

Industry executives said Samsung India has modified its appraisals and even average performers are being asked to look for jobs elsewhere. Those who are told to go are given 3-6 months' salary as compensation.

Samsung India president and chief executive officer HC Hong conveyed the need to restructure the business, including layoffs, in a video conference last week to more than 250 mid-to-senior managers, at the regional and branch levels also, the industry executives said.

Hong, who took charge of Indian operations last December after handling Latin America for three years, is cutting costs and flab across divisions, including sales promotion, administration, warehousing and logistics. The moves are aimed at right-sizing the company and improving efficiency and profitability so that the Indian operations can contribute more to global earnings.

"Based on business needs, we do reorganize our workforce to deliver optimal value to our consumers and partners in the country," a Samsung India spokesperson said in response to an email sent by ET. "We care for the well-being of all our employees and we remain committed to employing talent for continuing growth in India."

According to the industry executives, Samsung India's sales are below target due to a slowing market and increased competition across businesses and are under pressure this year, although it is betting on a revival with Diwali around the corner. The October-December quarter accounts for 30-40% of the company's annual sales.

Samsung India, which has increased sales by 30-40% in the past few years, has halved the growth rate target this year to 15-20%.

Samsung India has already restructured its television and white goods business twice in the past four months and recently divided the business regionally from the earlier channel-led format. The changes were aimed at triggering growth since the consumer electronics market had slowed from May, affecting total sales. Samsung is competing with Sony in the market for television sets and is trailing LG in home appliances.

In the smartphone business, where Samsung India commands a value share of about 40%, the company improved its performance in the premium segment, beating Apple, while it is still under pressure in the entry-to-mid segment, with competition from Chinese and Indian brands.

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As the Special Chief Secretary & IT Advisor to the Chief Minister - Govt. of Andhra Pradesh, J A Chowdary is all for chasing new growth horizons, pursuing radically different development approaches and outguessing technology trends that will shape the future.

As the Special Chief Secretary & IT Advisor to the Chief Minister - Govt. of Andhra Pradesh, J A Chowdary is all for chasing new growth horizons, pursuing radically different development approaches and outguessing technology trends that will shape the future.